BackSensex erases gains, ends lower amid caution
During the day, the benchmark Sensex hit a fresh record high of 41185.03 points while Nifty hit a high of 12134.65 pointsThe benchmark Sensex was closed 0.17% lower at 40938.72 points, while Nifty declined 0.22% to end at 12060.70 points
PremiumMUMBAI : After hitting fresh record high in early trade, equity markets erased their gains and closed marginally lower on Monday as investors exercised caution and avoided taking large positions amid widespread protests across India against the Citizenship Amendment Act.
The benchmark Sensex was closed 0.17% lower at 40938.72 points, while Nifty declined 0.22% to end at 12060.70 points.
During the day, the benchmark Sensex hit a fresh record high of 41185.03 points while Nifty hit a high of 12134.65 points.
Analysts said the protests may shift the government’s focus from the weakening economy. Last week, consumer price index-based inflation came in at a three-year high amid a slowing economy that has led analysts to believe there could be another status quo at the next bi-monthly monetary policy meeting of the Reserve Bank of India (RBI).
Protests over the citizenship act that began in the northeast last week spread to more states on Sunday, turning violent in parts of West Bengal and Delhi. Protests also broke out at other cities across the country, including Hyderabad and Varanasi.
Fall in ITC, Reliance Industries Ltd, auto and metal stocks also dragged the indices lower. ITC fell 2% amid concerns the Goods and Services Tax Council, which is meeting on December 18, would increase taxes on cigarettes. Godfrey Phillips India also declined 1.3%.
Reliance Industries declined 0.7%. Among auto stocks, TVS Motors fell 2.3%, Eicher Motors 2%, Ashok Leyland 1.7%, Mahindra & Mahindra 1.5%, Maruti Suzuki India 1.2%, and Hero MotoCorp 1.2%.
In metal stocks, Steel Authority of India Ltd lost 3%, NALCO 2.3%, JSW Steel, 1.8%, Tata Steel 1.5%, Jindal Steel & Power 1.5% while Vedanta slipped 1.4%.
Bank Nifty saw marginal gains and touched fresh all-time highs in the opening hours. However, it erased the gains and ended marginally lower on concerns over higher non-performing assets in the coming quarters after Reserve Bank of India said as many as 10 banks under-reported non-performing assets worth close to Rs24,000 crore in the year ended 31 March, Mint reported.
Punjab National Bank fell 1% after the RBI said the lender has under-reported bad loans by ₹2617 crore in fiscal 2019. Among other banking stocks, Union Bank of India lost 2.4%, Indian Bank 1.8%, Central Bank of India 1.6%, and Oriental Bank of Commerce 1.4%.
IT stocks gained with HCL Technologies, Tata Consultancy Services, and Tech Mahindra rising 0.5-3%.
Among laggards, Sun Pharmaceutical Industries fell 1% after the company said its Halol facility got eight observations from the US Food and Drug Administration.
Global stocks were mixed as the euphoria over the phase one of the US-China trade deal subsided, and caution set in ahead of the signing of the agreement in January.
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